Liquidnet, a global operator of buyside-only share-trading platforms, is considering its first UK acquisition as part of its strategy to diversify into fixed-income trading.

The group, headquartered in New York, has held talks with Vega-Chi, a UK-based operator of electronic bond platforms, according to two people familiar with the situation.

The talks, which form part of an internal Liquidnet initiative code-named Project Nova, are at an early stage and no agreement in principle has been reached, one person said.

The project is being led out of New York by Liquidnet’s global chief operating officer, John Kelly, another person said. Kelly has been open about the group’s plans to develop a fixed-income offering, and told Financial News last year that it was “cautiously exploring” how it could provide a solution in the sector.

The move comes as tighter capital requirements have made it increasingly difficult for traditional bond dealers to provide liquidity, while new regulations are also promoting the electronic trading of bonds.

Vega-Chi operates electronic platforms for convertible and high-yield debt in Europe and the US, and has more than 150 clients, primarily institutional investors. It was founded in 2009 by a team of former Goldman Sachs convertible bond traders and secured funding from venture capital firm Octopus Investments in 2011.

The company has yet to turn a profit, and stated in its most recent accounts last November that it was exploring opportunities for further financing.

A spokesperson for Liquidnet said it did not comment on market rumours. Vega-Chi did not comment.